EUR/USD: Double Bottom at 1.1200 - 4 April 2019

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Yesterday’s signals were not triggered as none of the levels were reached

Today’s EUR/USD Signals

Risk 0.75%.

Trades must be taken between 8am and 5pm London time today.

Short Trades

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1300 or 1.1325.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trades

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1228, 1.1214, or 1.1150.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

EUR/USD Analysis

I wrote yesterday that we may be seeing the start of a bullish bottom and also that the bearish trend line was likely to be the pivotal point of the day. This was a good call as we have had upwards movement over the past 24 hour and the bullish break of the trend line (which is still shown within the price chart below) was pivotal.

There is still a long-term bearish trend, and the price was not really ready to rise, being capped at around 1.1250.

Anything could happen now, so I have no directional bias. If the price turns bearish and we get a close below 1.1190 I would take a bearish bias later, but the action looks unpredictable over the short term.EURUSDThere is nothing of high importance due today concerning either the EUR or the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.